599 



s 






L.i..; 



?.., .irpX 




Glass. 



Book D 4"4^JA 



GENEVA ATTAED 



PETITIOX OF lVmETCALF. 



SHIP DE]LPHi:srE 



To the Hoiorahle Senate of the Lnited State x of America : 
The nndersigneil, builder, part owner. And agent for all 
the owners of ship Delphine^ respectfully prays that H. R. 
bill No. 1^685 may receive the early and favorable consid- 
eration of your honorable body. 

The Queen's proclamation, granting belligerent rights, 
made it possible for Confederate vess^efe of war to exist on 
the ocean.' ^' 

Through the sympathy and assistance of the Eno'lish 

'' The Queen's proclamation granting belligerent rights was issued 
before Hr. Adams, oxxr ilinister. had been received by the British 
government. At his first interview he said : " I must be permitted 
to express the great regret I had felt on learning the decision to 
issue the Queens proclamation, which at once rtiised the insurgents 
to the level of a beUigerent State. » * * j^. pronounced 
the insurgents to be a beUigerent State before they had ever shown 
their capacity to maintain any kind of warfare whatever. * * 
It considered them a maritime power before they had ever exhibited 
a single privateer on the ocean." — {Cor. conceriting Claims vs. G. 
B.. Vol. 1. p-p. 183-4.) 

Our Government said. Oct. 5. 1863 : •• The successive prepai'a- 
.tions of hostile navid expeditions in Great Britain are regtu'ded 
here as fruits of that injudicious proclamation." — {p. 270.) And 
Jan. 6, 1864 : •• On our p^u-t. we trace all the evils to an unneces- 
sary and. as we think, an anomalous recognition by Her Majesty's 
government." * * — {p. 273.) 

In the notice of oiu" Government to that of Great Britain, that 
she wonld be held responsible for the depreciations of the Shenan- 
doah before she reached Austraha, Mr. Adams said: •' I am reluctantly 
compelled to acknowledge the behef that, practically, this evil has 
its origin iu the first step taken, * * of acknowledging persons 
as a belhgerent power on the ocean before they had a single vessel 
of their own to show fioating upon it. " — The result of that proceed- 



c^b 1^ 



Government and people, sucli vessels were clispatclied to 
prey upon American commerce/^^ 

Twelve years ago, (Dec. 29, 1864,) one of tliese ves- 
sels — tlie Shenandoah — destroyed my ship Delphine. 

The circumstances were such tliat the American people 
believed England sliould be held responsiljle for this and 
all similar destructions/^^ 



iug has been that the power in question, so far as it can be entitled 
to the name of a belHgerent on the ocean at all, was actually created 
in consequence of the recognition, and not before ; and all that it 
has subsequently attained of such a position has been tkrough the 
labor of the subjects of the very country which gave it the shelter 
of that title in advance. 

Neither is the whole case stated even now. The results equally 
show that the ability to continue these operations with success 
dui'ing- the whole term of four years that the war has continued, 
has been exclusively owing to the opportunity to make use of this 
granted right of a belligerent in the courts and the ports and har- 
bors of the very power that furnished the elements of its existence 
in the outset. In other words, the Kingdom of Great Britain can- 
not but be regarded by the Government I have the honor to repre- 
sent, as not only having given birth to this naval belligerent, but 
also as having nursed and maintained it to the present hour. * * 

So far as I am aware, not a single vessel has been engaged in 
these depredations excepting such as have been so furnished ; unless 
indeed I might except one or two passenger steamers belonging to 
persons in New York, forcibly taken possession of whilst at Charles- 
ton in the beginning of the war, feebly armed, and very quickly ren- 
dered useless for anjj^ aggressive purpose. * * * 

'2> In a formal note to the British government, dated May 20, 
1865, our Government declared — 

First. That the act of recognition * * was precipitate and 
unprecedented. 

Second. That it had the effect of creating these parties belliger- 
ents after the recognition, instead of merely acknowledging an ex- 
isting fact. * * 

Fourth. That during the whole course of the struggle in America, 
of nearly four years in duration, there has been no appearance of 
the insurgents as a belligerent on the ocean, excepting in the shape 
of British vessels, constructed, equipped, supplied, manned and 
armed m British ports. * * (j(>. 304.) 

'3' Nln.th. That the injuries thus received are of so grave a nature 
as in reason and justice to constitute a valid claim for reparation 
and indemnification. * * 

The nation that recognized a power as a belligerent before it had 
built a vessel, and became itself the sole source of all the belligerent 



3 
Botli before ^^^ and after ^^^ my ship was destroyed, the 



character it has ever possessed on the ocean, must be regarded as 
responsible fot' aU the damage that has ensued from that cause. — 
(i>. 304.) 

* * "I have been singularly unfortunate in my corres- 
pondence if I have not given it to be clearly iinderstood that a vio- 
lation of neutrality by the Queen's proclamation, and kindred pro- 
ceedings of the British government, is regarded as a national wrong 
and injuiy to the United States ; and that the lowest form of satis- 
faction for that national injm-y that the United States could accept 
would be found in an indemnity without reservation or compromise 
by the British government, to those citizens of the United States 
who had suifered individual injury and damages by the vessels of 
war imlawfully built, equipped, manned, fitted out or entertained 
and protected in the British ports and harbors. * * * 

"• William H. Seward. 
"Charles Francis Adams." — (Co?*., <&c., Vol. 3,^;. 688.) 

**' {No. 1171.) Department of State, 

Washington, Dec. 3, 1864. 

Sir : Information has reached this department (from W^illiam H. 
Dabney, Esq., the consul of the United States at Teneriffe) to the 
efifect that the British steamer Laurel, reported to have sailed from 
Liverpool, with the pirate Semmes and one hundred picked men, 
met by appointment the English steamer Seu King at the Desertas 
of the Madeira, and there transferred to the Sea King Semmes and 
crew, armament, mmiitions, and stores, and received from the Sea 
King Captain Corbett and crew, who brought her to the Desertas, 
and who, on the 22d of the same month, were landed at Teneriffe for 
passage home. 

Thus it would seem that the notorious commander of the Alabama 
has again obtained command of a British-built vessel, which has 
been supplied by another British vessel with men, arms, and muni- 
tions carried out from a British port, and is now at large on the 
high seas for the purpose of committing depredations upon the com- 
merce of the United States. 

I toill thank you to bring the case under the attention of Karl 
Hussell, protesting against any such arrangement as that above in- 
dicated, and infor))ilng his lordship that if it is correctly stated, 
this Government cofisiders that Her JIaJestys goveryiment may be 
held justly I'csjJonsible for any losses accruing to citizens of the 
United States, through the depredations of the Sea King, \_Shen- 
andoah.'] 

I am, sh", your obedient servant, William H. Seward. 

Charles Francis Adams, Esq., &c. 
— {Correspondence concerning Claims vs. Gt. Jirit., Vol. 3,^). 330.) 

*5' {No. 1250.) Department of State, 

AVashington, Jan. 27, 1865. 
Sir : Eeferring to my dispatch of the 3d ultimo. No. 1171, in regard 
to the pu'atical vessel Sea King or Shenandoah, and to subsequent 



Government of the United States gave definite notice tliat 
it would hold Great Britain responsible for this specific 
damage. 

After long correspondence and delay, England having 

correspondence on the subject, I now transmit a copy of a dispatch 
of the 29th of November last, from James Monroe, Esq., the consul 
of the United States at Rio de Janeiro, containing a statement in rela- 
tion to the destruction of four United States merchant vessels, with 
their cargoes. * * * It appears from the information 

presented with Mr. Monroe's dispatch, that, with the exception of 
the name of the commander, the representation contained in my No. 
1171 is corroborated. Under these cu'cumstances I have to request 
you to inform. Iler Mt/jesti/s f/over/imeiit that the United /States 
will clai7n redress for the injtirles ami losses inflicted on their citi- 
zens by the depredations of the Sea King or /Shenandoah. 
I am, sir, your obedient servant, 

William H. Seward. 
Charles Francis Adams, Esq., &c., &c., &c. 

{Correspondoice, Clahns, <&c., Vol. 3, ^J». 335.) 

Legation of the United States, 

London, April 7, 1865. 

My Lord : I have the honor to transmit to you a copy of a letter 
addressed to the Secretary of State at Washington, by the consul 
of the United States at Rio Janeiro, Mr. Monroe, making a report 
of the depredations committed upon the commerce of the United 
States by the vessel known in the port of London as the Sea King, 
but since transformed into the ISheuandoah by a process already 
fully explained in a note which I had the honor to address to your 
lordship on the 18th November last. I regret to be obliged to add 
that this same vessel has been, since the date of Mr. Monroe's letter, 
heard of at Melbourne, from which place further details of similar 
outrages have been received * * * * 

Were there any I'easons to believe that the operations, carried on 
in the ports of Her Majesty's kingdom and its dependencies to main- 
tain and extend this systematic depredation upon the commerce of 
a friendly people, had been materially relaxed or prevented, I should 
not be luider the painful necessity of announcing to your lordship 
the fact that my (rovemrticnt cannot avoid enlaili7ig upon the gov- 
ernment of Great Jiritaln tlie re.^jwn.sihility for this damage. * * 

In view of all these circumstances, I am instructed, Avhile insist- 
ing on the protest heretofore solemnly entered against that proceed- 
ing, further respectfully to represent to your lordship that, in the 
opinion of my Government, the grounds on which Her Majesty's 
government have rested their defence against the responsibility in- 
curred in the manner heretofore stated, for the evils that have fol- 
lowed * * have now failed. * * * 

Charles Francis Adams. 
Right Hon. Earl Russell, &c., &c., &c. {Same, p. 345.) 



refused to meet tins i'espoiisil)ility, the President of the 
United States, in a message to Congress, December 5, 
1870, recommended that the chiims of private citizens who 
had suffered like myself should be audited and paid by 
the United States, and liehl ])y this Government against 
England.<6) 

Before tliere was time for Congress to act on this ad- 
vice, the Joint High Commission was appointed, to which, 
at its foui'th confei'ence, tlie American Commissioners pro- 
posed that it should then and there agree u})on a gross 
" sum \vhich should ])e [)aid by Great Britain to the United 
States in satisfaction of all the claims." 

The British Commissioners declined this proposal, l)ut 
the Commission framed the Treaty of Washington, by 
which " all the claims growing out of the acts of the sev- 
eral vessels " were referred to the Geneva Trilnuial. 

The Treaty established three new rules of international 
obligation, under which it nyn'red thv Tribunal to decide 
certain international <piestions, but ])y Art. VII it author- 
ized the T]'i])unal, "if it thought proper," to do what the 
English Commissioners had declined tt) take the responsi- 
bility of doing, viz : " proceed to award a sum in gross to 
be paid by Great Britain to the United States for all the 
claims referred to it." 

On the 14th September, 1872, "The Tribunal, making 
use of the authority conferred upon it by Art. VII of the 

(6) " The Cabinet of Londo]], so far as its views have been ex- 
pressed, does not appear to be willing to concede that Her Majesty's 
g-overnmeut was guilty of any negligence, or did or permitted any 
act, during the war, by which the United States have just cause of 
complaint. Our firm and unalterable convictions are directly the 
reverse. I therefore recommend to Congress to authorize the ap- 
pointment of a commission to take proof of the amount and the 
ownership of these several claims, on notice to the representatives 
of Her Majesty at Washington, and that authority be given for the 
settlement of these claims by the United States, so that the Govern- 
ment sliall have the ownership of the private claims as well as the 
responsible control of all the demands against Great Britain." 



said Treaty," awarded a gross sum, payable in one year, 
" as the indemnity to be paid l^y Great Britain to the 
United States for the satisfaction of all the claims referred 
to the consideration of the Trilnmal," and declared "that 
all the claims referred to in the Treaty, as submitted to 
the Tribunal, are liei-ehy fully, perfectly, and finally set- 
tled, * * whether the same may or not have been pre- 
sented to the notice of, or made, preferred, or laid before 
the Tribunal." 

Wlien Conc^ress next asseml)led, tlie President, in his 
message, said : "It will l)e the province of Congress 
to provide for the distriljution among those who may be 
entitled to it of tlieir respective shares of the money to be 
paid, * ''' * it is deemed advisable that no time be lost 
in making an examination of the several cases in which 
indemnification may be due." 

It soon became apparent that opinions differed as to 
who were entitled to it — as to what the cases were in 
which indemnification might be due. 

This diffei'ence arose from different theories as to the 
relation of the Government of the United States to the 
case and the fund. 

One party held that the Government, in the whole 
matter, acted as agent or attorney for private citizens 
who had claims against England; 

That as such attorney it had prosecuted the claims of 
its several clients before the great Court of Geneva; 

That the interlocutory decisions of international ques- 
tions by this Court were final, as to determining what 
claims were included in and sliould be paid fi'om the 
gross sum awarded; 

That this attorney had no discretionary right to adjudge 
the several cases on tlieir merits, and to distribute the 
fund collected to those who in its own judgment had 
suffered by England's fault, to the exclusion of those 
whom that fault had enriched. 



Tliis theory was earnestly and ably maintained by at- 
torneys for Insurance Companies, in order to establish 
their right ])y subrogation to payment, from the award, 
of what they had paid for destructions, without taking 
into account what they had received for war premiums. 

Hon. Mr. Evarts, as such attorney, referred to the 
claims of Insurance Companies as " placed in the hands of 
the Government for collection," and said to the Judiciary 
Committees : " The insurer does not apply for a share of 
this indemnity because he has lost money during or l)y 
reason of the war." 

These attorneys seemed aware that on no other theory 
than that of hard legal necessity Avould the American 
Congress and ])eople alloAV sucli claims of Insurance Com- 
panies, and thus consent to pay the money to those who 
were enriched l)y the fault for which it was awarded, to 
the exclusion of those who, like myself, were impover- 
ished by that fault. 

Others held the theory that in the whole matter the 
Government of the United States acted for itself as a 
nation, to maintain its own honor and establish its own 
rights, both of which required it to use due diligence to 
protect its citizens from wrongful injury ; 

That this nation was itself the plaintifP in the great 
case at Geneva ; 

That it called upon its aggrieved citizens to appear as 
witnesses, not plaintiffs, at the Court ; 

That the nation had the right to manage the whole 
case in the manner it deemed l)est for all its people ; 

That, in the exercise of this right, it had wisely so con- 
ducted tlie case before the Tribunal as to insure such de- 
cisions as would be most advantageous to the whole nati(?n 
in the future^ ^"^^ reser\dngto itself the right to judge who 

<7) ]^o. 18. J//-. Fish to Mr. Schenek. 

* * * "In this correspondence I have gone as far as 
prudence would allow in intimating- that we neither desii'ed or ex- 



of those entitled to its protection had suffered Joss 1^}' the 
acts comphiined of, and were tlierefore entitled to indem- 
nity from the amount I'ecovered ; 

That the arl titration ^vas bet^veen the United States and 
England, ^^' and in no sense between the United States 
and its own citizens ; 

That the Tribunal intentionally left this nation in })re- 
cisely the same relation to the '' gross sum " it awarded 
" in satisfaction of all tlie claims " as the action of the 
Joint Hii*:h Connnission would have left it to the sum aoTeed 
upon had the proposition for it to agree upon " a gross 
sum in satisfaction of all the claims " been acceded to ; 



pected am^ pecuniary award, and that we should be content with an 
award that a state is not hable in pecuniary damages for the indirect 
resvilts of a failure to observe its neutral obligations. It is not the 
interest of a country situate as are the United States, with their 
large extent of sea-coast, a small navy, and smaller internal police, 
to have it established that a nation is liable in damages, &c. * * 
This Government expects to be in the future as it has been in the 
past, a neutral much more of the time than a belligerent. * * 

"Hamilton Fish." 
— {Papers, t&c. Vol. 2, p. 47(5.) 

" The Arbitrators, however, disposed of the question * * in 
a manner entu'ely satisfactory to this Government, and in accordance 
with the views and the policy which it had maintained." — [Presi- 
dent's 3Iessage, Dec. 2, 1872.) 

*8* British property was in, and British underwriters had insured 
the cargoes of ships which were destroyed by the Alahamei. They, 
claiming that by the Geneva Award American citizens had been in- 
demniiied for similar loss, asked indemnity of their government. 

Under the advice of the law officers the British government re- 
jected theii' claim. 

During debate in the British Parliament Mr. Anderson asked : "If 
we were obliged to pay for damage sustained by the Americans by 
reason of the conduct of the Alabama, why were Ave not equally 
boirud to pay for the damage sustained by our own subjects by rea- 
son of the acts of that vessel ? " 

Mr. Gladstone, then Prime Minister of England, said : It ap- 
pears to be implied that the Government submitted the claims of 
certain persons not subjects of Her JNIajesty, to arbitration. 

" This is altogether a mistake. J^o claims of individuals have 
been sub)nitted to arbitration, in relation to the Alabama. 

" What was submitted to arbitration loas entirelij a question be- 
tu-een the two (rovernments.'' 
— {London Times, May 24, 1873.) 



That the Gc^vernment of the United States was careful 
to guard, b}' especial instruction to its counsel, against 
any other construction of the Treaty or award ; ^^^ 

That 1)oth ])ai'ties to the Treaty wished to leave the 
nation in tliat relation, tlierefore intentionally end)odied 
in Art. VII of the Treaty the precise words of the orig- 
inal proposition, wliich are also the precise words of the 
award ; 

Hence, that the money should be distril)uled in accord 
with the nation's ol)ligatii)n to protect its citizens from 
^vron^ ; 

That indenniity is due to those who have, through the 

*9' ( J/?'. Fixh to Mr. Cnshiiif/, and scone to 3Ir. Evarts and 
Mr. Waite.) 

Sir : The President liaviug appointed j'oii one of the counsel of 
the United States in the matter suljuiitted to the Tribunal of A.Yh\- 
tration, to meet in Geneva, * * it becomes necessary to give 
you briefly the President's instructions on the subject of your 
duties. * * 

The. President desires to have the subject discussed as one between 
the tii'o Governments, and he directs me to urge upon you stronglj' 
to secure, if possible, the award of a sum in gross. In the discus- 
sion of this tjuestion, and in the treatment of the entire case, you 
will be carefiil not to commit the Government as to the disposition 
of what may be awarded. * * The Government wishes to 
hold itself free to decide as to the rlf/hts a?id claims of insurers, 
u})on the termination of the case. If the value of the property cap- 
tured or destroyed be recovered in the name of the (rorer/tn/ent, 
the distrihation of the amount recovered will be made by this Gov- 
ernment, viithoKt committal as to the mode of distribution. It is 
exjDected that all such committal be avoided in the argument of 
counsel. * * Hamilton Fish. 

—{Papers, &c. Vol. % p. 414.) 

In accordance with these instructions our counsel said to the 
Tribunal : 

'' From thcs(! arrangements of the Treaty it is apparent * * 
Second, That tliese claims are all preferred by the United States as 
a nation against Great Britain as a nation, and are to be so com- 
puted and paid, whether awarded as 'a sum in gross,' under the 
seventh article of the Treaty, or awarded for assessment of amounts, 
under the tenth article." 

The Tribunal acted without objection upon this statement, and 
a'txirded " ci sum. in f/ross, in satisfaction of all the claims" — as far 
removed as possible from deciding whom the United States should 
indemnify fi'om the award. 



10 

fault of England, suffered such especial loss on the sea 
that they, after being indemnified for such loss, will still 
be, equally with all the other people of the United States, 
entitled to share in any part of the fund which may re- 
main, and that no others are entitled to it. 

The advocates of this theory claim that it is vindicated 
by all the history and record of the case. 

The Judiciary Committees of ])otli Senate and House, 
to which the sul)ject had been referred, after careful con- 
sideration reported bills based on the theory that no legal 
right or fiduciary trust restrains Congress from the exer- 
cise of its own judgment in determining who were the 
actual, ultimate, unindemnified losers by the acts and 
faults complained of, and equitably distributing the fund 
among such losers, and such only. 

The House bill specifically, and the Senate bill practi- 
cally, provided indemnity to Insurance Companies for 
losses caused " by either or all cruisers bearing the Con- 
federate flag." 

Both l:)ills required them in showing such loss to take 
into account the extra premiums which they had received 
for war risks. 

The friends of Insurance Companies in both Senate and 
House made strenuous, but unsuccessful, efforts to so 
amend the bills as not to restrict insurers to their net 
loss. 

The Senate and House each passed its bill, and in this 
respect just as reported by its committee. 

The bills differed broadly in their provisions. One 
created a new Court to adjudicate the claims on the fund; 
the other referred them to existing Courts. One did not, 
the other did, provide indemnity for loss by payment of 
war premiums. 

Neither House concurring in the other's views, a con- 
ference committee was appointed, which, having failed to 
agree upon a mode of distrilnition, left the whole subject 



11 

to the Forty-Third Congress, by reporting a bill (enacted 
and appi'oved March 3, 1873) providing that upon the 
payment of the money awarded at Geneva it " shall be 
invested in the 5 per cent, registered bonds of the United 
States, to be held su])ject to the future disposition of 
Congress.'" 

The money was })aid by Great Britain on the 9th of 
September, 1873, and immediately so invested. 

Dui'ing the first session of the Forty-Third Congress 
the H. R. Judiciary Committee listened to the advocates 
of different theories and claims, and at last reported a 
bill which allowed payment to citizens and corporations 
of the United States out of the money paid by Great 
Britain— 

" First. For all loss, destruction, or damage by any 
Confederate cruiser, for whose acts the Government of 
the United States have made demand upon the Govern- 
ment of Great Britain ;" '■'• * ''■ and " to all insurers 
* '=' who shall show that the war premiums actually re- 
ceived by them did not equal in amount the losses paid 
by them because of property thereafterward captured 
and lost or destroyed by either or all of said cruisers.'''' 

Secondly. To those who had paid a premium for war 
risks, and provided that Mutual Insurance Companies 
who have paid a loss shall be indemnified for the same. 

Amendments relieving Insurance Companies from the 
obligation to take into the account their receipts for war 
premiums ; also a suljstitute, offered by Mr. Poland, in 
the interest of Insurance Companies, were very earnestly 
insisted on by their friends, but rejected. The proviso 
in favor of .Vutual Insurance Companies was stricken out 
by a vote of more than two to one, and the bill passed in 
the House by 31 majority. 

The Judiciary Conunittee of the Senate adhered to its 
previous action creating the Court of Commissioners of 
Alabama Claims, and reported a bill, ^vhicli practically 



12 

gave indemnity to Insurance Companies for actual loss by 
all Confedei'ate cnusers, requiring them to deduct war 
pi'emiums I'eceived from tlie amount of their gross loss. 

It provided indemnity for otliei' sviiferers by tlie Ala- 
hania, Florida, and their tenders, and ])y the Slienandoali. 
after she left Mell)oui'ne, retpiiring them to deduct from 
their gross loss all that they had i'eceived from Insui'ance 
Companies or otherwise, but as yet made no ])rovision for 
private citizens who had suffered ])y the depredations of 
the other Confederate ci'uisers, oi' l)y ])ayment of war 
premiiuns. 

As before, very earnest efforts were unsuccessfidly 
made in l)elialf of Insurance Com})anies to strike out the 
proviso which excluded tliem from further })ay unless 
they could show ultimate loss. 

Amendments were also offei'ed to pr<)\ itk^ for loss by 
the other ci'uisers, and l)y ])aymeiit of war pi'emiums, but 
rejected. Senator Frelinghuysen remarking : " There is a 
class of claims provided for in this ])ill that all agree 
ought to be paid. Now do not let us burden the bill. 
Hereafter there will l)e a l)ahince, and then provisi(jn can 
be made for the war premiums and tlie other claims," and 
the Ijill })assed the Senate. 

On disagreement, a conference committee was appointed 
which adopted the Senate plan creating a new court, and 
including only the sufferers provided for in the Senate 
bill, l)ut enacting that the balance of the money "shall 
1 )e and I'enndn a fund fi'oni whicli C/ongress may hereafter 
authorize the payment of other claims tliereon.'" 

This l)ill became law January 23, 1874. The C^ourt 
which it created convened July 22, 1874, and would ex- 
pire by limitation January 22, 1876. 

At the second session of the Forty-Third Congress a 
])ill (H. R. 4715) was reported from the House of Repre- 
sentatives Judiciary Committee, providing indemnity for 
loss l)y all Confederate cruisers not ])i'o\nded for by the 



13 

act of 1874, and dividing the balance among Insiirance 
Companies and those who paid them the war premiums ; 
also a special bill (H. R. 4845) in my favor, l)nt no action 
was reached in either House or Senate. 

It being apparent by the time the Forty-Fonrtli Con- 
gress assembled that the Court of Commissioners of Ala- 
bama Claims could not complete its work in the time 
allowed, a law was enacted extending its dui'ation luitil 
July 22, 187G. 

Its labors had so far progressed as to show that a very 
large balance of the Geneva Award fund would be left 
after the claims provided for l)y the law of June 2.j, 1874, 
should have been paid. 

The question to whom this balance should be paid at 
once became prominent. Bills were introduced in Senate 
and House, and warmly advocated V^y several celebrated 
attorneys for Insui'ance Companies, to give it to them, by 
repealing the proviso wliich denied them payment beyond 
their actual loss. 

Bills providing indenmity to other sufferers for such 
loss occasioned by all the Confederate cruisers, and by 
payment of war j^remiums, wei'c also introduced, and re- 
ferred to the Judiciary Conunittees. 

A sub-committee of iour members of the H. B. Judi- 
ciary Committee, after careful and exhaustive examination, 
unanimously agreed upon a bill which followed the theory 
and ]Hode of distribution already embodied in the law of 
June 28, 1874, in tliat it so extended its provisions as to 
give indenuiity (to the extent of the fund only) for — 

First, actual, ultimate loss, caused ])y all the Confed- 
erate cruisers ; 

Second, for such loss l)y payment of war premiums, 
thus providing tlie same redress for otlier Insurance Com- 
panies and for otlier sufferers as was already provided by 
the law for most of the Insurance Companies. 

For, although the 11th section of the law of 1874 



14 

seemed to admit only damage caused l)y tlie AlaJxima, 
Florida, and tlieii' tenders, and the Shenandoah after 
Melbourne, tlie 12tli section allowed Insurance Compa- 
nies which had lost by either of these cruisers, and thus 
obtained a standing in the Court, in making up their 
account to include all they had paid for destructions l>y 
all the Confederate cruisei's, and also all they had paid 
for war premiums. 

This l>ill, however, went l>eyond the theory of the law 
of 1874 (which allowed indemnity only to the extent of 
actual loss) in that it provided that if a balance of the 
fund should remain after paying for actual loss, rather 
than return it to England or cover it into the United 
States Treasury, it should l)e given to Insurance Compa- 
nies in payment Ijeyond their net loss. 

The H. R. Judiciary Committee adopted this bill, and 
reported it to the House. 

A minority of the conunittee, headed l)y Mr. Knott, its 
chairman, adopted the theory that the findings of the Tri- 
bunal at Geneva left no discretionary power to the Gov- 
ernment of the United States as to the distribution of its 
award. 

They I'eported a substitute repealing tlie proviso which 
restricted Insurance Companies to indemnity foi' their net 
loss, and suggested that, shoidd there still be a surplus, 
" national honor would perhaps require that it should be 
returned to Great Britain." 

This minority report was rejected, receiving but 35 
votes. 

The l)ill of the committee was so amended as not to 
pay Insurance Companies beyond their actual loss, ]>ut to 
leave unexpended any balance which might remain, thus 
making it accord exactly with the theory of existing law. 

As thus amended, the bill was passed ])y the House of 
Kepresentatives, July 6, 18 70. 

No action was reached in the Senate, except to pass a 



15 

})ill, wliicli became law, extending the duration of the 
Court until January 1, 1877. 

Meantime the anxiety of attorneys for Insurance Com- 
panies to have the proviso requiring them to account for 
their receipts for war premiums repealed was explained 
by the proceedings of the Court of Alabama Claims, which 
show that most insurers were benefited instead of injured by 
the faults of England complained of by the United States. 

Only three companies showed a net loss, and these for 
an aggregate of only $116,870.70, for which amount they 
received the judgments of the Court.^^^^ 

Of this $59,850.99 was paid by these Insurance Com- 
panies for war premiums on reinsured risks, and $57,- 
019.71 was net loss by destructions of property. 

A few Insurance Companies who lost to a small amount 
were not admitted by Article II of the law. These are 
provided for in the l;)ill as it passed the House, and awaits 
action in the Senate. 

In view of these facts I humbly, but earnestly, ask that 
this bill may receive prompt and favorable attention by 
the Senate, that I may thus receive the indemnity which 
I so fully believe is justly my due, and for which I have 
waited so long. The beneficiaries of this bill have, in 
common with all the people of the United States, and in 
addition to their losses on the sea, for which this bill pro- 
vides, sustained on the land their full share of all the 
hardships, dangers, losses, and expenses of the war. 

If, after the provisions of this bill are fvdly met, there 
shall remain a l)alance of the finid for the benefit of all 
the nation, no men in all the nation will l)e more justly 
entitled to a share of tliat balance than those for whose 
extraordinary losses this bill ])rovides. 

E. W. METCALF, 

Builder of ship Delphine. 

('0' The Commercial Mutual Marine, claim No. 1089 ; The Ocean 
Mutual, claim No. 1093 ; The Mutual Marine, claim No. 1098, (all of 
New Bedford.) 



AN ACT for the distrilmtion of the nnai)propriated moneys of the Geneva 

award. 

Be it eiiaeted by the f^enate and House of Jiepresentatives of tJie 
United States of America in (Jo)Kjress assembled, That it shall be 
the duty of the Court of Commissioners of Alabama Claims, in the 
mode and subject to all the conditions, limitations, and provisions of 
chapter four hundred and fifty-nine of the laws of the Forty-third 
Congress, except as changed or modified by this act, to receive and 
examine the claims mentioned in section two of this act, and to en- 
ter judgment for the amounts allowed therefor in two classes, such 
claims to be filed with the clerk of said court within six months 
from the passage of this act ; and said court is hereby continued 
until July twenty-second, anno Domini eighteen hundred and sev- 
enty-seven. 

Sec. 2. That the first class shall be for claims directly resulting 
fi'om damage done on the high seas by Confederate cruisers during 
the late rebellion, including vessels and cargoes attacked or taken 
on the high seas or pursued therefrom, although destroyed within 
four miles of the shore, except as provided for in section eleven of 
said chapter four hundred and fifty-nine. The second class shall be 
for claims for the payment of premiiTms for war-risks, whether paid 
to corporations, agents, or individuals, after the sailing of any Con- 
federate cruiser. 

Sec. 3. That in examining claims in the second class, it shall be 
the duty of the court to deduct any sum in any way received by or 
rejDaid to the claimant, diminishing the amount paid for any such 
premium, so that the actual loss of the claimant only shall be al- 
lowed. 

Sec. 4. That the judgments rendered by said court under this act 
shall be paid by the Secretary of the Treasury out of the sum of 
money paid to the United States pursuant to article seven of the 
treaty of Washington, and accruing therefi'om, not appropriated to 
claims provable under the provisions of said chapter four hundred 
and fifty-nine, and the act extending the tin^ie for the filing of claims 
thereunder. 

Sec. 5. That judgments entered in the first class shall be paid be- 
fore judgments of the second class are paid. If the sum of money 
so unappropriated shall be insufficient to pay the judgments of the 
first class, they shall be paid according to the proportions which 
they severally bear to the whole amount of such unappropriated sum. 
If such sum shall be sufficient to pay the judgments of the first class, 
and not sufficient to pay the judgments of the second class, the lat- 
ter judgments shall be paid according to the proportions which they 
severally bear to the residue of such unappropriated sum. 

Sec. 0. That in all other respects the said judgments shall be re- 
ported and paid in the mode provided for the payment of judgments 
by said chapter four hmidred and fifty-nine, and the act providing 



17 

for tbe payment of judofments rendered and to be rendered there- 
iinder. 

Sec. 7. That all claims filed, or that may hereafter be filed, in said 
Court in the name of one or more claimants, relating to a vessel in 
which other claimants are interested, shall be deemed and held to be 
legally filed the same as if all the parties in interest had joined in the 
filing of the petition. 

Passed the Honse of R* })re8entatives July 6, 1876. 
Attest: GEO. M. ADAMS. Clerk. 



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